TRUTH 12 Franchising: Buying into someone else’s formula for success
Franchising is a form of business ownership in which a firm that already has a successful product or service (franchisor) licenses its trademark and method of doing business to other businesses (franchisees) in exchange for an initial franchise fee and ongoing royalties. The total initial investment includes the franchise fee, the costs associated with getting the franchise up and running (which vary by franchise), and any other fees that are part of the franchise agreement. The ongoing royalty fee, which is usually around 6 percent, is based on a percentage of weekly or monthly gross income.
Advantages of buying a franchise
There are two primary advantages to ...
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